Malmaison Hotel du Vin Holdings said it was continuing to go from strength to strength despite suffering a near £24 million pre-tax loss because of restructuring costs.
The company’s 28 hotels across the UK include the Malmaison in Dundee and the Hotel du Vin in St Andrews.
Finance director Paul Roberts said the group had delivered a solid performance in its first full year of trading under new ownership to June 30, 2014.
Sales and earnings before interest, taxes, depreciation and amortisation, a measure of its operating efficiency, had grown in line with the UK economy.
“We continue to see our properties perform at the top of their respective competitive market groups, and to be recognised as the leading boutique hotels brand in the UK,” said Mr Roberts in his report on the accounts.
“Performance during the year was impacted positively by the upturn in the general UK economy, and the positive contribution from the full renovation at our Malmaison London property.
“Future performance will benefit from the extension and refurbishment of our Hotel du Vin property in St Andrews, the impact of the new Malmaison Dundee, and the continued improvement in our markets.”
Turnover was up 5.1% at £119.9m, and gross profit was up 7.3% at £69.4m.
An exceptional payment of £20.1m for an impairment of tangible fixed assets and group restructuring costs turned an operating profit in 2013 of £9.9m to an operating loss of £6.3m and a pre-tax loss of £23.8m in 2014 the latter figure being more than double that for the previous year.
During the year the group reassigned its £70m debt facility and incurred administrative expense costs of £322,692 on behalf of its parent company MHDV Holdings (UK) Ltd.
Mr Roberts explained that the group’s external debt had been successfully refinanced, and a further option had been established to its facility to take advantage of growth opportunities.
This enabled the group to look at numerous development opportunities, and the refinancing process also saw an adjustment to the underlying valuation of the group’s properties after an external valuation.
The restructuring of the group streamlined the corporate structure, he added, and allowed the business to react quickly to new opportunities.
The first set of accounts for MHDV Holdings (UK) were also published yesterday.
They showed a turnover of £153.6m in the year to June 30, 2014.
However, after sales of £64.6m, administrative expenses of £65.6m and interest of £24m, a pre-tax loss of £564,372 was reported.